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3PL to Transform Logistic Industry in India

By Shushmul Maheshwari

Dated: May 13, 2009

Increasing focus on core business activities along with improvement in infrastructure will drive 3PLservices in India.

The increasing preference for 3PL services will transform the way logistic operations have been carried outin India till now, says RNCOS in its new research report, “3rd Party Logistics Market in India”. At present,the 3PL market is at a nascent stage of development, with multinational companies in all industries beingthe predominant users of these services. However, the domestic major companies in leading industrialsectors have also begun to follow the footsteps of their multinational counterparts, starting with outsourcingtheir basic logistics functions. The total revenue generated by 3PL players surpassed US$ 1.5 Billion in2008 from mere US$ 890 Million in 2005. As per the findings of our research, the present market scenario of 3PL services in India can’t be comparedwith that of developed markets like the US and Europe where the usage of 3PL services is more than 50%in most of the industries. But the Indian market offers immense growth opportunity as compared todeveloped markets due to improving infrastructure like highways, ports, bridges and increasingconnectivity along with rising importance of logistic services. We have identified the auto and IT hardware industry as the largest end-user industry for 3PL services.Other sectors that have shown substantial contribution to 3PL market and significant growth potentialinclude FMCG, pharmaceutical and retail sectors. The market will generate revenue of close to US$ 4Billion by 2012 and will result in more effective ways of implementing logistic operations in India. While the share of 3PL services in India is far lesser than developed markets, when it comes to share oflogistic cost as percentage of GDP, it is high in India and China ranging between 13% and 15% due to lackof infrastructure facilities and less focus on creating value through efficient handling of logistic services. Our latest research report, “3rd Party Logistics Market in India”, gives comprehensive information aboutthe current and past situation of 3PL services in India. The segment wise market potential of 3PL services isalso provided in the report to help client to analyze the penetration level of new modern logistic services invarious industries. The report also highlights the factors responsible for the increasing attractiveness ofIndian 3PL market along with brief overview of the key players in the industry. For FREE SAMPLE of this report visit: http:// www.rncos.com/Report/IM186.htm Check DISCOUNTED REPORTS on: http:// www.rncos.com

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About RNCOS: RNCOS, incorporated in the year 2002, is an industry research firm. We are a team of industry experts whoanalyze data collected from credible sources. We provide industry insights and analysis that helpscorporations to take timely and accurate business decision in today's globally competitive environment.

Category Business

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